One.Tel cuts cost of broadband

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One.Tel has introduced cut-price broadband for its existing customers almost a month before BT reduces its wholesale price for DSL.

From today One.Tel's single user service costs £27.99 a month as the ISP prepares to absorb the additional cost in the hope of attracting new punters.

New users who sign up now also can also start receiving DSL for the lower price, the discount telco subsidiary of Centrica says.

Ian El-Mokadem, managing firector of Centrica’s telecommunications arm, said: "Even though BT's new wholesale price does not take effect until April 1, we have been overwhelmed by customers who are keen to get broadband for less."

In January Centrica bought the broadband business of Scottish ISP, iomart, for £2 million.

So far i,t has yet to begin throwing serious money at marketing its new operation. But with the recent announcement concerning wholesale price cuts by BT it seems the time might be right.